Bumbak, in the matter of the Corporations Act 2001 (Cth) [2018] FCA 928

Bumbak, in the matter of the Corporations Act 2001 (Cth) [2018] FCA 928

The Court appointed Mr Bumbak as liquidator upon Mr Rocke's resignation because the orders would facilitate the better conduct of well-advanced liquidations by individuals familiar with the Companies' affairs, preserve continuity through KordaMentha staff and records, and serve the interests of creditors, notwithstanding ASIC's concerns and the serious initial failure to disclose ASIC's letter. The Court did not remove Mr Rocke but made contingent appointment orders on the basis of his resignation, allowed creditors liberty to apply, and ordered that the application costs not be recoverable from the Companies' assets.

Jurisdiction
Australia
Judgment Date
14 June 2018
Procedural Posture
Application Under Schedule 2 S 90 15 of the Corporations Act 2001 (cth) for Appointment of a New Liquidator Upon Resignation of the Existing Liquidator / First Instance Application Determined
Outcome
Application granted in part; contingent orders made appointing John Allan Bumbak as liquidator upon Clifford Stuart Rocke's resignation, with notice to creditors, liberty to apply, and costs not payable from the Companies' assets.
Legal Topics
['external Administration' 'liquidator Resignation' 'appointment of Replacement Liquidator' 'court Supervision of Liquidations' 'costs of Liquidation Application']
['corporations' 'corporate Insolvency'] ['external Administration' 'liquidator Resignation' 'appointment of Replacement Liquidator' 'court Supervision of Liquidations' 'costs of Liquidation Application']

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Procedural Posture

Application Under Schedule 2 S 90 15 of the Corporations Act 2001 (cth) for Appointment of a New Liquidator Upon Resignation of the Existing Liquidator / First Instance Application Determined

Legal Issues

  1. 1 ['Whether the Court should appoint John Allan Bumbak as liquidator of the Companies upon the resignation of Clifford Stuart Rocke.' "Whether concerns raised by ASIC about use of a power of attorney and the plaintiffs' initial non-disclosure of ASIC's letter should affect the making of the orders." 'Whether the costs of the application should be borne by the Companies or their creditors.']

Ratio Decidendi

The Court appointed Mr Bumbak as liquidator upon Mr Rocke's resignation because the orders would facilitate the better conduct of well-advanced liquidations by individuals familiar with the Companies' affairs, preserve continuity through KordaMentha staff and records, and serve the interests of creditors, notwithstanding ASIC's concerns and the serious initial failure to disclose ASIC's letter. The Court did not remove Mr Rocke but made contingent appointment orders on the basis of his resignation, allowed creditors liberty to apply, and ordered that the application costs not be recoverable from the Companies' assets.

Court Disposition

Application granted in part; contingent orders made appointing John Allan Bumbak as liquidator upon Clifford Stuart Rocke's resignation, with notice to creditors, liberty to apply, and costs not payable from the Companies' assets.

Orders

  • ['Upon the resignation of Clifford Stuart Rocke on or before 21 June 2018 as liquidator of ACN 063 291 430 Pty Ltd (in liq), John Allan Bumbak be appointed as liquidator of the company.' 'Upon the resignation of Clifford Stuart Rocke on or before 21 June 2018 as liquidator of Marnta Media Pty Ltd (in liq) (ACN 100...